Timor-Leste, Southeast Asia’s smallest economy, is now ASEAN’s newest member.
“Timor-Leste has struggled with securing investments, due to the country’s instability and associated risks,” says Norashiqin Toh, a post-doctoral fellow at Tsinghua University’s Institute for Advanced Study in Humanities and Social Sciences.
“Becoming a member of ASEAN will likely send a credible signal to international investors of the country’s political stability, and also attract further investments from businesses in other ASEAN member states.”
Timor-Leste is Asia’s youngest nation, gaining independence on May 20, 2002. The eastern half of the island of Timor was colonized by the Portuguese in the 16th century. The territory remained under Portuguese rule, apart from a brief Japanese occupation during the Second World War, until 1975, when a left-wing Portuguese government pledged to withdraw from all its colonies.
Indonesia invaded Timor-Leste just a week after Portugal withdrew, leading to almost a quarter-century of occupation marked by severe human rights abuses.
In 1999, Timor-Leste’s population voted overwhelmingly for independence in a United Nations-sponsored referendum. The vote was organised at the request of then-Indonesian president B. J. Habibie, allowing its people to choose between independence or greater autonomy within Indonesia. A few years later, in 2002, Timor-Leste became the first new sovereign state of the 21st century.
In the 23 years since its independence, Timor-Leste has made significant progress in nation building, expanding critical infrastructure like roads, airports, and internet access. The country has also eradicated once-rampant tropical diseases like malaria.
“This is similar to Singapore’s strategy of a small country utilizing the bloc to increase its influence,” says Pasha L. Hsieh, a law professor from the Singapore Management University.
Being a member of ASEAN also gives Timor-Leste a seat at the table with world leaders it might not be able to access on its own, Toh, from Tsinghua, adds. “Many formal and informal bilateral meetings occur on the sidelines of summits such as the ASEAN summit, so Timor-Leste can use the opportunity to develop its political ties,” she says.
Economically, the country will also benefit from near-zero tariffs in the ASEAN market, which can help diversify its industry.
The initiative provides targeted capacity-building support for newer and less developed ASEAN members—namely Vietnam, Laos, Myanmar and Cambodia—to strengthen institutions, infrastructure and human capital.
“This will help Dili better align with ASEAN’s economic and technical standards,” Lin says.
And importantly, Timor-Leste’s ASEAN membership is an affirmation of its sovereignty, putting it in equal standing with its former occupier, Indonesia, within the regional bloc.
Timor-Leste’s ASEAN admission “reflects the strength of its democracy, built through regular elections, peaceful political transitions and a vibrant civil society that continues to hold institutions accountable,” Lin says.
